Question: The Iverson Company's next expected dividend, D1, is $2.16; its growth rate is 8 percent; and the stock now sells for $40. New stock can

The Iverson Company's next expected dividend, D1, is $2.16; its growth rate is 8 percent; and the stock now sells for $40. New stock can be sold at a price of $34.00.

a. What is Iverson's percentage flotation cost?

b. What is Iverson's cost of new common stock?

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